April 2007

Peter Wilson Director Great Central Railway (Nottingham) Limited Mere Way Ruddington Nottingham NG11 6NX

Dear Mr Wilson

Great Central Railway (Nottingham) Limited

On 1 March 2007 the Office of Rail Regulation’s (ORR’s) new general approval for third party liability insurance (TPLI) arrangements took effect¹. The general approval replaces our previous guidance and simplifies the annual approval process for all operators whose arrangements meet its terms.

This letter confirms that the general approval applies to your TPLI obligations with the following variation(s), as previously agreed by the Strategic Rail Authority and ORR:

| Section in ORR’s general approval | Variation | |-----------------------------------|------------------------------------------------| | 3a – minimum cover required. | Minimum cover required is £10M. |

This variation applies while these conditions are met:

| No. | Condition | |-----|---------------------------------------------------------------------------| | 1 | You will notify ORR forthwith if your required level of TPLI is eroded. | | 2 | The nature of the operations is as described in the Risk Assessment by RMS Locotech. | | 3 | You will notify ORR of any claims made over the indemnified level of £10M. |

¹ [http://www.rail-reg.gov.uk/upload/pdf/3rdptyins_genapp-230207.pdf](http://www.rail-reg.gov.uk/upload/pdf/3rdptyins_genapp-230207.pdf) While you meet these conditions, you may rely on the new general approval with the variation(s) set out above. This means that you only need to provide us with a broker’s confirmation that cover is in place in accordance with the general approval (as varied by this letter) when you renew your cover. A template confirmation letter can be found on our website.

You do not need to send us director’s and auditor’s statements detailing your self-insurance arrangements, insurance certificates or full policy documentation. You should however satisfy yourselves that you have a reasonable expectation of being able to meet your self-insurance obligations, and keep appropriate records in case we want to see them.

If you have any questions, my colleague Gordon Herbert (Gordon.Herbert@orr.gsi.gov.uk, 020 7282 3964) will be pleased to help.

A copy of this letter will be placed on ORR’s public register.

Please forward a copy of this letter to your insurance brokers.

Yours sincerely

[Signature]

Rob Plaskitt